Tata Motors:

Tata Motors Limited, Indias largest automobile company, is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, mid-size car and utility vehicle segments. 1 3rd Largest Bus Manufacturer in the World 4th Largest Truck Manufacturer in the World (>8t) Largest Portfolio Of Products (Light, Medium And Heavy Trucks, Buses & Coaches, Passenger Cars & Uvs) Acquired Commercial Vehicle Business Of Daewoo In 2004 (TDCV) Acquired Jaguar Land Rover In 2008.2 Tata motors stock market value of 29th june ,2012 3

Contains corporate strategy:

Provides detailed business description, segment analysis, 5-year financial trends, key products and key competitors Includes information on suppliers/ partners, shareholding structure and key employees with biographies. The company recorded strong financial performance during the last five year period. During 2003-2007, the revenues of the company grew at a CAGR of 36.4%, to reach INR331,525 million (approximately $7,347 million) in 2007 from INR95,731 million (approximately $2,121 million) in 2003.4

Value Chain Analysis: Tata Motors:

Long term contract with service providers transporters and agents Personnel at regional offices for overseeing the smooth transit of goods, Transparency and monitoring through deployment of IT all transactions through SAP.DTL supplies for critical high value items. Efficient storage facilities easy storage and retrieval Operations. Capital Equipment Manufacturing division tooling development capabilities of global standard. Apprentice Trainee Course ensuring stable source of skilled manpower. Kaizen & TPM team continuous drive to improve.5 http://www.sap.com/india/about/company/successes/pdfs/Tata_Motors.pdf 1 http://www.tatamotors.com/investors/pdf/2011/FY-11-AGM-presentation.pdf 2 http://www.moneycontrol.com/india/stockpricequote/autolcvshcvs/tatamotors/TM03 3 http://www.researchandmarkets.com/reports/607080/premium_company_profile_tata_motors_li mited.pdf 4
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http://www.oppapers.com/essays/Value-Chain-Analysis/754584

Market Competitors.
TATA Motors is vulnerable to greater competition at home. Foreign vehicle makers Including Daimler, Nissan Motor, Volvo and MAN AG have struck local alliances for a Bigger presence. TATA Motors, which has a joint venture with Fiat for cars, engines and transmissions in India, is also facing heat from top car maker Maruti Suzuki India Ltd, Hyundai Motor, Renault and Volkswagen6 But overall at a global scale, Tata Motors didnt perform that badly. The rest part of the ratios is from their global performance as reported by Thomson Ratios and World scope Ratios (Retrieved from CBS Library). Tata Motors consistently achieved return on assets and return on invested capital that is five times that of Ford Motor Company. In addition, Tata Motors achieved substantial return on equity that has been more than 30% throughout except 2008 at global level (although in NYSE, their equity value crashed probably due to the systematic risks faced by NYSE which led to an overall crash of the entire stock market)7.

Suppliers:
Imported Products shall mean Products / components manufactured outside India meeting specifications as defined by Tata Motors. Local Products shall mean Products / components manufactured in India meeting the specifications as defined by Tata Motors and also the Imported Products as and when they get manufactured in India. Products shall mean both imported products and local products which in combination constitute the Product. Spare Parts shall mean all parts that are intended for maintenance of the Products. Vehicles shall mean all vehicles manufactured by Tata Motors which also incorporate the Suppliers Product along with other components and aggregates. Terms such as "CIF", FOB assumes the meaning as defined in Incoterms2000.8 Tata Motors purchase Products from supplier, subject to supplier meeting system specifications, quality, reliability, performance, delivery, price requirements etc of Tata Motors as detailed in various sections in this General Terms and Conditions, RFQ, Drawings, Tata Motors Standards,

Purchase Orders and other agreements, such as Purchase Agreement, Supply Agreement etc that may have been executed with the supplier.9 If any materials are supplied by Tata Motors to the supplier on free of cost basis for manufacturing/assembling into items to be supplied to Tata Motors, it shall be suppliers responsibility to provide safe custody, proper storage, adequate insurance cover and proper usage for these materials. The supplier shall not hypothecate such materials to financial institutions for financing or divert any of these materials for any use other than

conversion/manufacture/assembling in components to be supplied to Tata Motors. The supplier shall keep proper accounting for these materials and provide the reconciliation statements with confirmation of the balances at the end of every year to Tata Motors and return the material when required by Tata Motors. Further, the supplier agrees to facilitate physical verification by officials of Tata Motors or any other persons duly authorized by Tata Motors in this behalf at all reasonable time. The supplier commits to complete the documentation required by law regarding such material provided by Tata Motors.10

http://seminarprojects.com/Thread-competitor-analysis-of-tata-motors-and-maruti-suzuki http://studenttheses.cbs.dk/bitstream/handle/10417/708/miel_van_blitterswijk_og_rosen_karadz

hov.pdf?sequence=1
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http://suppliers.tatamotors.com/Project_Docs/rfq_terms_conditions.pdf http://studenttheses.cbs.dk/bitstream/handle/10417/758 http://suppliers.tatamotors.com/Project_Docs/rfq_terms_conditions.pdf

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Buyers:
When buyer power is strong, the buyer is the one who sets the price in the market. Here there are purchases of large volumes. There is prevalence of alternative options. Price sensitive customers were some of the factors that determine the extent of influence of the buyers in this industry, In the case of Maruti, the sales volumes have shown increasing trend over past so many years. The customers are more or less concentrated in metros or other tier two cities. The industry is also concentrated in these regions mostly. Most of them are have good amount of knowledge about the product. Except the 800cc range in other categories brand loyalty is only moderate. Also it is difficult to measure since repurchases are rare. Product differentiation is high as there are many categories in the passenger vehicle segment. Buyers get incentives in the form of cost discounts and better after sales services.11

Substitutes:
Price band

The threat that consumer will switch to a substitute product if there has been an increase in price of the product or there has been a decrease in price of the substitute product. If the price of the NANO car will increase the main expected customers the one switching from bike to car will not move to car and will remain in the bike only. Thus the price is kept checked in this manner.12 Scenario, the small car market in India is very competitive with players like Maruti Suzuki, Tata Motors, Hyundai etc. which was pretty much dominated by Maruti. But with launch of Nano the 1akh car the whole momentum of the market has shifted. Now to be competitive in market other companies have to either slash rates of their existing model or have to go back to the drawing board and build again13.

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http://www.india.manufacturers.globalsources.com/?gclid=CI2t1fTy97ACFQpj3wodIkwP-A
http://web.archive.org/web/20070430005127/http://www.indianrail.gov.in/abir.html

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http://www.powermin.nic.in/indian_electricity_scenario/introduction.htm

New Entrants
Economies of scale: The Minimum Efficient Scale (MES) is the point at which unit costs are minimized. The Greater the difference between the MES and the entry unit cost, greater is the barrier. Economies of scale are becoming increasingly important as competition is driving the profit margins to lower levels. Also being a capital intensive industry economies of scale have important consequence.14

Government policies: Automobile Industry was relicense in July 1991 with the announcement of the New Industrial Policy The passenger car industry was relicensed in 1993. No industrial license is required for setting up of any unit for manufacture of automobiles except in some special cases The norms for Foreign Investment and import of technology have been progressively liberalized over the years for manufacture of vehicles including passenger cars in order to make this sector globally competitive At present 100% Foreign Direct Investment (FDI) is permissible under automatic route in this sector including passenger car segment. The import of technology/technological up gradation on the royalty payment of 5% without any duration limit and lump sum payment of USD 2 million is allowed under automatic route in this sector The automotive industry comprising of the automobile and the auto component.15

Indian compact car market seems to be getting hotter, with not only better car models, but also the intensity of the competition in the segment. The market which is growing at 20-25% annually is attracting international player like Volkswagen, Toyota, Nissan and Ford, all of whom are expected to come up with a number of new launches in this segment of the Indian car market. The new players plan to differentiate their products through competitive pricing and additional features like added space, fuel efficiency and better performance. It seems like competition is set to go to a whole new level for existing players in the market.16

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http://articles.economictimes.indiatimes.com/2012-06-04/news/32031746_1 http://tejas-iimb.org/articles/31.php http://www.nielsen.com/in/en/news-insights/press-room/2012/tata-motors-tops-nielsen-s-

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